EXHIBIT 99.4
TPI SELECTED CONSOLIDATED HISTORICAL FINANCIAL DATA
The financial information for each of the five years in the period ended December 31, 2006 was derived from TPI’s audited financial statements. The financial information for the nine months ended September 30, 2006 and 2007 was derived from TPI’s unaudited interim financial statements. TPI’s unaudited interim financial statements reflect all adjustments necessary to state fairly their financial position at September 30, 2006 and 2007 and their income and cash flows for the nine months ended September 30, 2006 and 2007. Interim results are not necessarily indicative of results for the full year and historical results are not necessarily indicative of results to be expected in any future period. The selected financial information set forth below should be read in conjunction with “TPI Management’s Discussion and Analysis of Financial Condition and Results of Operations” and its audited year-end and unaudited interim financial statements.
| | | | | | | | | | | | Nine Months Ended | |
| | Years Ended December 31, | | | | | | | | September 30, | |
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 2006 | | 2007 | |
| | (dollars in thousands) | | | | | | | | | | | |
Statement of Operations Data: | | | | | | | | | | | | | | | |
Revenue | | $ | 63,980 | | $ | 72,114 | | $ | 97,150 | | $ | 146,128 | | $ | 161,503 | | $ | 123,335 | | $ | 129,503 | |
Operating expenses: | | | | | | | | | | | | | | | |
Direct costs and expenses for advisors | | 37,982 | | 43,526 | | 58,493 | | 83,690 | | 95,562 | | 72,171 | | 77,465 | |
Selling, general, and administrative | | 21,437 | | 20,496 | | 30,174 | | 45,100 | | 50,586 | | 39,372 | | 38,642 | |
Depreciation and amortization | | 764 | | 836 | | 829 | | 1,930 | | 2,436 | | 1,817 | | 1,616 | |
Operating income | | 3,797 | | 7,256 | | 7,654 | | 15,408 | | 12,919 | | 9,975 | | 11,780 | |
Interest income | | 22 | | 15 | | 20 | | 44 | | 108 | | 34 | | 179 | |
Interest expense | | (38 | ) | (51 | ) | (1,643 | ) | (3,398 | ) | (3,821 | ) | (2,882 | ) | (2,741 | ) |
Loss on extinguishment of debt | | — | | — | | — | | — | | (527 | ) | (527 | ) | — | |
Foreign currency transaction gain (loss) | | 193 | | 399 | | 334 | | (411 | ) | (136 | ) | (86 | ) | 355 | |
Income before taxes | | 3,974 | | 7,619 | | 6,365 | | 11,643 | | 8,543 | | 6,515 | | 9,573 | |
Income tax provision(1) | | (570 | ) | (385 | ) | (1,806 | ) | (5,176 | ) | (3,457 | ) | (2,606 | ) | (3,966 | ) |
Net Income | | $ | 3,404 | | $ | 7,234 | | $ | 4,559 | | $ | 6,467 | | $ | 5,086 | | $ | 3,909 | | $ | 5,607 | |
Cash Flow Data: | | | | | | | | | | | | | | | |
Cash provided by (used in): | | | | | | | | | | | | | | | |
Operating activities | | $ | 6,628 | | $ | 6,031 | | $ | 6,166 | | $ | 5,944 | | $ | 3,437 | | $ | 129 | | $ | (7,494 | ) |
Investing activities | | $ | (656 | ) | $ | (865 | ) | $ | (1,668 | ) | $ | (5,469 | ) | $ | (777 | ) | $ | (449 | ) | $ | (968 | ) |
Financing activities | | $ | (5,747 | ) | $ | (4,607 | ) | $ | (3,023 | ) | $ | 700 | | $ | 261 | | $ | 2,560 | | $ | 1,887 | |
Balance Sheet Data: (end of period) | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 2,856 | | $ | 3,415 | | $ | 4,889 | | $ | 5,939 | | $ | 9,454 | | $ | 8,532 | | $ | 3,274 | |
Total Assets | | $ | 13,235 | | $ | 16,395 | | $ | 26,467 | | $ | 47,680 | | $ | 48,821 | | $ | 51,516 | | $ | 56,700 | |
Total stockholders’ equity (deficit) | | $ | 3,181 | | $ | 5,752 | | $ | (17,740 | ) | $ | (7,519 | ) | $ | 572 | | $ | (1,388 | ) | $ | 7,102 | |
Other Financial Data: | | | | | | | | | | | | | | | |
EBITDA(2) | | $ | 4,754 | | $ | 8,491 | | $ | 8,817 | | $ | 16,927 | | $ | 14,692 | | $ | 11,179 | | $ | 13,751 | |
(1) In June 2004, TPI completed a leveraged recapitalization and simultaneously elected to be taxed as a C Corporation. See Note 1 to TPI’s consolidated financial statements.
(2) As used herein, EBITDA means net income before (i) net interest expense, (ii) depreciation and amortization and (iii) income tax expense. TPI believes that EBITDA is a useful measure to stockholders of comparative operating performance, as it is less susceptible to variances in net income resulting from amortization of intangible assets and is therefore more reflective of changes in our revenue and cost drivers and other factors that affect operating performance. TPI believes that EBITDA provides a useful and appropriate perspective on the fundamental health of the Company’s business operations unaffected by factors outside the control of operational management. Material limitations associated with the use of the measure as compared to net income primarily are that the cost of capital borrowed
(interest expense), the cost of the consumption of intangible assets acquired in acquisitions (amortization expense) and the burden of paying income taxes are all excluded from EBITDA. EBITDA as defined herein is not intended as a measure of our operating performance, as an alternative to net income or as an alternative to any other performance measure in conformity with U.S. generally accepted accounting principles or as an alternative to cash flow provided by operating activities as a measure of liquidity. EBITDA may not be comparable to similarly titled measures used by other entities.
The following table provides a reconciliation of EBITDA to net income:
| | Years Ended December 31, | | | | | | | | Nine Months Ended
September 30, | |
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 2006 | | 2007 | |
| | (dollars in thousands) | | | | | | | | | | | |
Net income | | $ | 3,404 | | $ | 7,234 | | $ | 4,559 | | $ | 6,467 | | $ | 5,086 | | $ | 3,909 | | $ | 5,607 | |
Interest expense, net | | 16 | | 36 | | 1,623 | | 3,354 | | 3,713 | | 2,848 | | 2,562 | |
Depreciation and amortization | | 764 | | 836 | | 829 | | 1,930 | | 2,436 | | 1,817 | | 1,616 | |
Income tax provision | | 570 | | 385 | | 1,806 | | 5,176 | | 3,457 | | 2,606 | | 3,966 | |
EBITDA | | $ | 4,754 | | $ | 8,491 | | $ | 8,817 | | $ | 16,927 | | $ | 14,692 | | $ | 11,179 | | $ | 13,751 | |
